PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM

I - When the dividend amount received exceeds the amount that the policy holder paid in premiums - answer-The amount received that is over and above the amount paid into the policy via premiums is considered to be gain and is therefore taxable. There are no dividends paid on term life insurance policies. Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application? - answer-Benefits are adjusted to an amount that the premium would have purchased at the correct age or gender. Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as thereafter as is reasonably possible? - answer-Notice of claim.